Findex 2021 - where does Pakistan stand?

The fourth wave of the global Findex survey was released last week by the World Bank to much anticipation and suspense. Unlike previous rounds which were released every third year, this fourth dataset has been unveiled after a gap of four years; an unusual delay caused by the onset of the global pandemic in 2020.

For those who may not be aware, the Findex provides the single largest comparable dataset measuring progress on key financial inclusion metrics across 124 countries. Its wide-ranging acceptability was demonstrated at the launch of this latest edition with a high-profile panel discussion moderated by David Malpass, President of the World Bank and a keynote address by HM Queen Maxima of the Netherlands, who is the UN Secretary-General's Special Advocate for Inclusive Finance for Development.

Headline findings show significant global progress on financial inclusion: Worldwide account ownership increased to 76 per cent from 51pc since 2011. Significantly, the survey also reports a narrowing gender gap (from 9 percentage points to 6) in account ownership.

Survey findings reveal an increase in the proportion of adults opting to place their savings with a formal financial institution, averaging 58pc of all adults in high-income economies and 25pc in developing economies. In addition to these top-line numbers, survey findings show significant momentum in the uptake of digital financial services, driven during these last four years largely by the pandemic.

Despite notable progress, gaps persist for financial inclusion relative to peer countries

Individuals in developing countries receiving digital payments directly into their accounts increased from 35pc in 2014 to 57pc in 2021. For developing countries (excluding China), 40pc of adults who made digital merchant payments did so for the first time after the start of the pandemic.

The survey also provides insights on quick wins and persisting gaps. This wave estimates that 39pc of adults opened their first account specifically to receive a wage payment or receive money from the government. Digitising government payments, especially, have yielded wide-ranging benefits: the report states that a 47pc reduction in internal fraud and leakage from pension payments was observed in India after these payments were disbursed via biometric smart cards instead of in cash.

While recipients benefited by receiving more money because of reduced fraud, the government saved millions of dollars annually in...